Mission Produce Reports 24% Decline in Q2 Sales, Completes Calavo Growers Acquisition

Mission Produce, Inc. reported a significant decline in financial performance for the second quarter of fiscal 2026, with net sales of $290.9 million, down 24% from $380.3 million in the same period last year. The decrease was primarily attributed to a 36% drop in per-unit avocado sales prices, despite a 15% increase in avocado volume sold, driven by higher yields from Mexican suppliers. For the six months ending April 30, 2026, net sales totaled $569.5 million, a 20% decrease from $714.5 million in the prior year, reflecting similar trends in pricing and volume.

The company's gross profit also fell, amounting to $20.5 million for the quarter, down 28% from $28.4 million a year earlier, with a gross profit margin of 7.0%. This decline was influenced by the low per-unit selling prices of avocados and increased production costs in the International Farming segment. Operating losses were reported at $7.0 million for the quarter, compared to an operating income of $6.9 million in the previous year. The company incurred $6.4 million in transaction advisory costs related to its recent acquisition of Calavo Growers, which further impacted profitability.

In terms of strategic developments, Mission Produce completed the acquisition of Calavo Growers on May 28, 2026, for approximately $465 million, funded through a combination of cash and stock. This acquisition is expected to enhance the company's position in the avocado market and expand its offerings into prepared foods. The company also announced a new stock repurchase program, allowing for the repurchase of up to $100 million in shares over the next three years, replacing a previous program with approximately $11.2 million remaining.

Operationally, Mission Produce's total assets increased to $1.008 billion as of April 30, 2026, up from $983 million at the end of the previous fiscal year. The company reported a cash balance of $33.0 million, down from $64.8 million, and total liabilities rose to $396.6 million, compared to $363.1 million. The company’s employee headcount remained stable, and it continues to focus on expanding its market share in the avocado and blueberry sectors.

Looking ahead, Mission Produce anticipates that the integration of Calavo will yield cost synergies and operational efficiencies, although it acknowledges the risks associated with the acquisition and ongoing market volatility. The company remains cautious about external factors such as tariffs and economic conditions that could impact its performance. Overall, Mission Produce is positioned to leverage its expanded capabilities while navigating the challenges of the current market environment.